BULK mailers have reacted cautiously to proposals to further postal tariff increases. They are set to rise by about 7% from April 2007 – and by similar percentages each year up to 2009 – under Guernsey Post’s three-year pricing plan, which is under consideration by the Office of Utility Regulation.

The proposals were announced last week and follow the enactment last month of increases in the bulk mail tariff of up to 70%.

‘Obviously we are not exactly keen on price rises and every rise is bound to have an effect on business to some extent, it is bound to,’ said Guernsey Bulk Mailers’ Association chairman Rodney Brouard.

‘It is definitely enough, but, as far as I’m concerned, we’ve been assured by Guernsey Post that from next year, the bulk mailers will not be heavily subsidising the rest of Guernsey Post, as we have been doing for the last few years.

‘No price rise is welcomed, but we’ve been assured by the acting chief executive of Guernsey Post ‘Steve Hannon’ that he is doing all he possibly can to keep prices down and keep holding prices down in the future.’

Mr Hannon, while announcing the proposed rises last week, said that he believed some bulk mailers would be able to increase their business, despite the proposed rises.

Mr Brouard said: ‘It depends on which bulk mailer it is and which market they are in.

‘Everyone has a different market.’

He added that those most able to advertise were likely to see business increase.

A full efficiency review is being undertaken at Guernsey Post by independent consultants employed by the OUR.

Mr Brouard said: ‘I’ve met those people and have put my views to them. I know that they know where I am coming from – we are not happy to continue subsidising other areas of Guernsey Post.

‘We don’t see why the bulk mailers should be supporting the rest of the postal service.’

The three-year plan also includes proposals to increase the cost of local and UK letter prices to 39p and 40p respectively by 2009.

Mr Brouard said there was no doubt that domestic charges had to be increased to counter cross-subsidisation.

‘Before, we were horrendously subsidising the other side – they have admitted that – it is a fact.

‘The bulk mailers will be charged what the Royal Mail are charging, the charge for delivering to the UK plus the cost of getting our product from here to the UK, plus the cost of operating the system for the bulk mailers, which will be separated by Guernsey Post and we accept that there will be a profit – an acceptable profit.’